{"id":32720,"date":"2025-06-27T13:31:34","date_gmt":"2025-06-27T13:31:34","guid":{"rendered":"https:\/\/financialrush.com\/?p=32720"},"modified":"2025-06-27T13:31:34","modified_gmt":"2025-06-27T13:31:34","slug":"sp-500-hits-record-high-as-markets-recover-from-trump-tariff-shock","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=32720","title":{"rendered":"S&#038;P 500 hits record high as markets recover from Trump tariff shock"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Stay informed with free updates<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Simply sign up to the <!-- -->US equities<!-- --> myFT Digest &#8212; delivered directly to your inbox.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=4dec99d5-ccec-4ad3-99af-e8b2a04a7c7f&amp;concept-id=971c884d-f8fa-45c8-af59-bee0d7f28284\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Wall Street\u2019s S&amp;P 500 share index climbed to a record high on Friday, capping a dramatic rebound by US stocks from a sharp drop earlier in the year sparked by Donald Trump\u2019s barrage of global tariffs.<\/p>\n<p>The blue-chip index opened 0.2 per cent higher at 6,155.66, eclipsing a previous intraday peak of 6,147.43 on February 19.<\/p>\n<p>A US-brokered <a href=\"https:\/\/www.ft.com\/content\/67207725-da79-4c3b-9ced-0479adb0da06\" data-trackable=\"link\">ceasefire<\/a> in the conflict between Israel and Iran has boosted equities this week, easing investors\u2019 concerns about a potential disruption to the flow of oil exports from the Middle East. Trump also said on Thursday the US and China had <a href=\"https:\/\/www.ft.com\/content\/a86da19b-65f0-4e0f-8989-c9ac2b61c46a\" data-trackable=\"link\">\u201csigned\u201d a trade deal<\/a>.<\/p>\n<p>The S&amp;P 500 has risen more than 23 per cent \u2014 entering a technical bull market \u2014 since hitting a 15-month intraday low on April 7 soon after the US president announced his \u201cliberation day\u201d plans several days earlier. The <a href=\"https:\/\/www.ft.com\/trump-tariffs\" data-trackable=\"link\">levies<\/a> unleashed waves of volatility across financial markets, with economists lowering their forecasts for global economic growth.<\/p>\n<figure class=\"n-content-image n-content-image--full\" data-component=\"image-set\"><picture><source media=\"(min-width: 700px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A59a2d503-fa27-41d7-bd6e-cd63313d579a?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A59a2d503-fa27-41d7-bd6e-cd63313d579a?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A59a2d503-fa27-41d7-bd6e-cd63313d579a?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=3 3x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A59a2d503-fa27-41d7-bd6e-cd63313d579a?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=4 4x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A59a2d503-fa27-41d7-bd6e-cd63313d579a?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=5 5x\" width=\"3500\" height=\"2500\"\/><source media=\"(max-width: 490px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ac564bbd3-b111-4a4b-8c56-212e5032b53c?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ac564bbd3-b111-4a4b-8c56-212e5032b53c?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ac564bbd3-b111-4a4b-8c56-212e5032b53c?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=3 3x\" width=\"1500\" height=\"2000\"\/><\/picture><\/figure>\n<p>But Trump\u2019s subsequent delay to some of his tariff plans, along with a series of climbdowns from his more aggressive threats and relatively robust economic data, have spurred a rapid comeback for stocks. <\/p>\n<p>\u201cPeak trade uncertainty is in the past, [the US economy] remains resilient and the narrative has re-centred on AI and growth,\u201d said Venu Krishna, head of US equity strategy at Barclays. Citi\u2019s top US equity strategist Scott Chronert expects the S&amp;P 500 to rally a further 2.5 per cent by the end of 2025.<\/p>\n<p>Stocks\u2019 rebound contrasts with continuing pressure on US Treasuries and the dollar \u2014 which fell to a three-year low this week \u2014 caused by rising concerns about the sustainability of the country\u2019s <a href=\"https:\/\/www.ft.com\/content\/75a4acf6-b3fa-4a90-8b4e-4c0724afd407\" data-trackable=\"link\">growing debt<\/a>.<\/p>\n<p>Measures of US consumer and business sentiment have also been hit by Trump\u2019s erratic tariff announcements on products including metals, semiconductors, cars and basic goods. <\/p>\n<p>But equities have been supported\u00a0by solid earnings for some of Wall Street\u2019s biggest companies, and signs that Trump\u2019s attempts to radically reorientate US trade policy have yet to reignite inflation or upend the jobs market.<\/p>\n<p><a href=\"https:\/\/www.ft.com\/content\/8361835c-6955-4ee3-80a1-8e7e19127e6c\" data-trackable=\"link\">A rush of buybacks<\/a> and retail investors\u2019 robust demand have provided further fuel to the recent rally. Trump\u2019s landmark tax bill is also forecast by some analysts to boost economic growth and prop up corporate profits.<\/p>\n<figure class=\"n-content-image n-content-image--full\" data-component=\"image-set\"><picture><source media=\"(min-width: 700px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A163469d6-fbdd-4552-a654-a6c14d95f88d?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A163469d6-fbdd-4552-a654-a6c14d95f88d?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A163469d6-fbdd-4552-a654-a6c14d95f88d?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=3 3x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A163469d6-fbdd-4552-a654-a6c14d95f88d?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=4 4x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A163469d6-fbdd-4552-a654-a6c14d95f88d?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=5 5x\" width=\"3500\" height=\"2500\"\/><source media=\"(max-width: 490px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ac9eae4f2-b82f-46a5-b190-cba490d3e0b3?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ac9eae4f2-b82f-46a5-b190-cba490d3e0b3?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ac9eae4f2-b82f-46a5-b190-cba490d3e0b3?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=3 3x\" width=\"1500\" height=\"2000\"\/><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fd6c748xw2pzm8.cloudfront.net%2Fprod%2F493c9bd0-529c-11f0-8c61-db5fdccfedec-standard.png?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=1\" alt=\"Line chart of CBOE Vix index showing US stock market volatility has collapsed after surging in April\" data-image-type=\"graphic\" width=\"3500\" height=\"2500\" loading=\"lazy\"\/><\/picture><\/figure>\n<p>\u201cRegardless of what actually happens with tariffs, the market seems to view them as old and manageable news,\u201d said Lisa Shalett,\u00a0chief investment officer at Morgan Stanley Wealth Management. <\/p>\n<p>\u201cThe market doesn\u2019t discount the same event twice. There are \u2018growth scares\u2019 and we move on.\u201d<\/p>\n<p>Tech stocks slumped early this year but have been the best performers since Trump\u2019s <a href=\"https:\/\/www.ft.com\/content\/82e5a5c0-3e7b-419d-92f9-7b84475af2c9\" data-trackable=\"link\">U-turn on April 9<\/a>. Since that time shares of analytical software group Palantir are up 87 per cent, online broker Robinhood has risen 147 per cent and server maker Super Micro Computer has gained more than 55 per cent. \u201cBig Tech led the [earlier] sell-off and is now leading the rebound,\u201d said Krishna.<\/p>\n<figure class=\"n-content-image n-content-image--full\" data-component=\"image-set\"><picture><source media=\"(min-width: 700px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A0dc5a796-23c4-4804-81cf-624ca0c1a3fc?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A0dc5a796-23c4-4804-81cf-624ca0c1a3fc?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A0dc5a796-23c4-4804-81cf-624ca0c1a3fc?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=3 3x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A0dc5a796-23c4-4804-81cf-624ca0c1a3fc?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=4 4x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A0dc5a796-23c4-4804-81cf-624ca0c1a3fc?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=5 5x\" width=\"3500\" height=\"2500\"\/><source media=\"(max-width: 490px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A4245304b-b64a-4d22-b0c7-e9a1c060d52d?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A4245304b-b64a-4d22-b0c7-e9a1c060d52d?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A4245304b-b64a-4d22-b0c7-e9a1c060d52d?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=3 3x\" width=\"1500\" height=\"2000\"\/><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fd6c748xw2pzm8.cloudfront.net%2Fprod%2Fe5c3fa80-529b-11f0-920b-5fe5ee9c7a08-standard.png?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=1\" alt=\"Bar chart of S&amp;P 500 YTD return (%) by sector showing Industrials have led the US stock market higher this year\" data-image-type=\"graphic\" width=\"3500\" height=\"2500\" loading=\"lazy\"\/><\/picture><\/figure>\n<p>Industrials stocks have also been big winners in 2025. Howmet Aerospace has gained 62 per cent while Uber and GE Vernova have rallied 54 per cent, making them the best performing stocks in the sector so far this year. Defence group RTX and tractor maker Deere have risen by 23 per cent and 20 per cent respectively.<\/p>\n<p>Yet bearish analysts maintain that the stock market\u2019s gains rest on shaky foundations, warning that slowing growth in bank lending and rising credit card delinquencies point to weakening economic growth.<\/p>\n<p>\u201cWhile \u2018peak pessimism\u2019 may be past, we believe we are far from back to where we were in January,\u201d said Shalett, who said in an email to clients that \u201cin aggregate, the US stock market is even more expensive based on forward earnings\u201d than it was at the start of the year.<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/4dec99d5-ccec-4ad3-99af-e8b2a04a7c7f\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Stay informed with free updates Simply sign up to the US equities myFT Digest &#8212; delivered directly to&hellip;\n","protected":false},"author":6,"featured_media":32721,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-32720","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/32720","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32720"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/32720\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/32721"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}